QB Issue Resolution:

I can help you check why the Average Cost of your items are not calculating correctly.

 

Your Average Cost of the items is affected by the cost of goods in the inventory and the total number of items available for sale. The cost of each item in an inventory is calculated on the basis of the average cost of all similar goods in the inventory.

 

To drill down the cause of your weighted cost miscalculation, your best course of action is to run the Inventory Valuation Summary report. This will provide the quantity and average cost for each item to support the balance on the financial statements once an adjustments have been made.

 

Here’s how:

  1. Go to Reports at the top menu bar.
  2. Hover your mouse to Inventory.
  3. Select Inventory Valuation Summary.
  4. Set the dates to all.
  5. Double click the item in question to show Inventory Valuation Detail report. It will populates how QuickBooks derived the item’s average cost.

The average cost column is based on the purchases, sales and adjustments made to an item. If the detail does not match the financial statements, the reason is usually the result of one of the following:

  • A transaction was coded directly to the inventory balance on the general ledger, rather than following proper procedures through the enter bills, write checks, create cash sales receipt, create invoice, or inventory valuation process.
  • An inventory item that still has a value but has been marked as inactive.

Typically, discrepancies are the result of a journal entry, or a purchase on a bill or check coded to inventory on the Expense tab, rather than through purchasing an item on the Items tab. Thus, creating a negative inventory

 

You can use an inventory adjustment to increase or decrease the quantity on hand for a tracked inventory item, or revalue the item. I recommend you consult with your accountant or bookkeeper before making any inventory adjustments.

 

The following article contains more insights in understanding COGS tracking: https://quickbooks.intuit.com/community/Inventory-and-projects/Understand-Inventory-Assets-and-COGS-….

 

This should provide information about your inventory concern. Let me know how things go after following the above steps.. I’ll be on the lookout for your reply and to further assisting you if you have other questions. Wishing you and your business continued success.

Resolution for Issue 'Cost of Goods Sold' available: Yes (Solved).
Source: Intuit Community forum.

Cost of Goods Sold: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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